Print this story |
E-mail story |
Add a comment |
iPod friendly | Bookmark this
What is this?
Local state funding to remain intact
Published 06:23 a.m., December 10, 2009
Gov. Tim Pawlenty announced Tuesday he will not use unallotment to reduce or delay the December local government aid (LGA) payments scheduled for cities and counties.
That’s welcome news to Fergus Falls officials, who feared the city’s December aid payment could take a serious hit in light of the $1.2 billion state budget deficit. At a meeting Monday, City Administrator Mark Sievert said a significant unallotment could force staff to re-evaluate the city’s 2010 budget and levy, delaying its certification to Otter Tail County.
Tuesday’s announcement means the city budget will not be revised before the city council votes on its certification Dec. 21. The council could choose to reduce the budget before it is certified, but the law prohibits any increases.
Information on the 2010 budget and levy was presented at Monday’s city council meeting and is available on the Finance Department page of the city’s Web site.
December aid may be safe, but the outlook for next year’s payments is less certain.
“It just stands to reason that we could potentially see more cuts to our LGA for July and December of 2010,” Sievert said Wednesday.
The sooner the city knows how much those cuts will be, the better officials can plan to handle them, Sievert said. The governor has encouraged legislative committees to start meeting right away in hopes a solution can be addressed at the start of the legislative session in February.
Pawlenty made the announcement in a letter to the League of Minnesota Cities and the Association of Minnesota Counties.
Sievert and Mayor Hal Leland had planned to be at the Capitol Thursday for a press conference and hearing regarding potential unallotment. Both events have been canceled.
An unallotment in December 2008 left Fergus Falls about $320,000 short of its expected LGA payment. Left with no time to modify the budget before the end of the year, officials opted to absorb the loss using dollars set aside for cash flow purposes.
WOULD YOU LIKE TO SHARE THIS STORY?
Comments
The Daily Journal is happy to host community conversations about news and life in Fergus Falls and the surrounding area. As hosts, we expect guests will show respect for each other. That means we don't threaten or defame each other, and we keep conversations free of personal attacks. Those who persist with racist, defamatory or abusive postings risk losing the privilege to post. To post a comment you will need to register. Or, if you're already registered but have not included your true, verifiable identity with your registration, you will need to update your account to include your identity. Effective Dec. 1, 2009, all posts appear with the commenter's true identity, which must be verified by site staff. Those who registered prior to Dec. 1, 2009, should be aware that once you update your information with your true identity, all prior posts under your user name will also indicate your true identity. If you do not wish to link yourself to prior comments, you should register again with a different user name.Post a comment (Terms of Use Policy)
(Requires free registration.)
You may also register to comment in our forums at www.fergusfeedback.com.